Important Shiba Inu Metric Soars by 100% Amid SHIB Price Rally: Details

TL;DR

• Shiba Inu (SHIB) surged by 10% on June 5, with a significant spike in whale activity.
• The rally could also be attributed to the meme coin’s burning mechanism and advancements in Shibarium.

SHIB on the Move Again

The cryptocurrency market has been flourishing today (June 5), with Shiba Inu (SHIB) being one of the best performers. Its price pumped by 10% on a 24-hour scale, currently trading at approximately $0.00002612 (per CoinGecko’s data).

SHIB Price, Source: CoinGecko

Its resurgence coincides with the spike in major indicators related to the Shiba Inu ecosystem. IntoTheBlock data shows that SHIB aggregated daily volume (where each transaction is greater than $100K) increased to almost $135 million. The figure represents a 99% jump compared to the one observed on June 4.

SHIB’s latest revival benefited investors—quite naturally. As of now, 65% of all HODLers are sitting on paper profits, while whales control 73% of the circulating supply.

The situation was much different in September last year, when around 90% of all SHIB investors were underwater.

What Might be Driving the Rally?

SHIB’s resurgence could have been partially fueled by the meme coin’s burning mechanism and the further advancement of the layer-2 scaling solution – Shibarium. The burn rate exploded by over 10,000% on June 4, while almost 370 million tokens were destroyed throughout the last month. 

The program’s ultimate goal is to reduce the circulating supply of SHIB, thereby increasing scarcity. The process may potentially lead to a rise in the token’s value over time, assuming demand remains constant or goes up. 

For its part, Shibarium blasted through another milestone at the end of May when the total blocks processed on the network exceeded the five million mark. The protocol was officially introduced last summer and aims to foster the development of the Shiba Inu ecosystem by lowering transaction fees, improving speed, and boosting scalability. 

Last but not least, we will touch upon SHIB’s exchange netflow. In the past few days, outflows have surpassed inflows, suggesting a shift from centralized platforms toward self-custody methods. This is considered bullish since it reduces the immediate selling pressure.

SHIB Exchange Netflow, Source: CryptoQuant

The post Important Shiba Inu Metric Soars by 100% Amid SHIB Price Rally: Details appeared first on CryptoPotato.